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automobile warranty

Choosing a warranty plan is more than just deciding whether you want to go directly through an online provider or accept an offer from your dealership. Auto extended warranties come in many coverage levels, with some covering wear and tear or overheating, while others cover only mechanical breakdowns. You may have heard of “bumper to bumper” coverage before, but what does it all mean? What is necessary and what is just fluff? Before you buy, be sure to iron out the details so you don’t become one of the court claims.

You may be wondering, “Do I need to purchase a warranty plan, or will I be covered by my car manufacturer’s warranty?” In some cases, people have purchased two-year extended warranty coverage only to find that they had already been covered just fine by their manufacturer. According to the consumer site CarSmart.com, the best coverage is on high-end luxury sports cars, like Aston Martins, Lamborghinis, Ferraris and Rolls-Royces, which are covered until 999,999 miles.

At the next tier, you’re covered for five years (or 60,000 miles) if you drive a Mitsubishi, Kia, Infiniti or Hyundai. You’re covered four years (or 50,000) miles if you have an Acura, Audi, BMW, Buick, Cadillac, Hummer, Isuzu, Jaguar, Land Rover, Lexus, Lincoln, Maserati, Mazda, Mercedes, Mini, Porsche, Saab, Volkswagon or Volvo.

You may want to consider purchasing an additional warranty if you’re rough on your mid-range vehicle or if you buy a lower range vehicle from Chevrolet, Chrysler, Dodge, Saturn, GMC, Honda, Jeep, Ford, Mercury, Nissan, Pontiac, Suzuki, Scion or Subaru (whose manufacturer warranties only cover 3 years or 36,000 miles.) If you drive a 2008 or later GM model, then you’ll be covered for 100,000 miles or five years.

Many people assume that there is such a thing as an “implied warranty” that protects them for so many days after they bring their new car home. Generally, you should not rely on this type of warranty plan. If you’re test driving a used car and hear a clunking sound and the salesperson says they’ll take care of it, get that promise in writing to document the problem (or simply pass on the car!) If the warranty plan doesn’t explicitly say that part will be covered, then the dealer is under no obligation to fix it, legally. Some states have a “lemon law” that says you’re entitled to repairs or replacement if the problem cannot be resolved after so many attempts. However, if you’re buying a used car “as is,” then you automatically void your right to lemon law protection and assume any risk.

If you’re buying a used car that costs less than $5,000, then is the warranty plan even worth it? At Warranty Direct, you can get an out-of-warranty plan on any vehicle over 36,000 miles that covers you four years (or 100,000 miles, whichever comes first). If you’re buying a car so cheaply, then it’s probably not worth your while to pay half that much for an automobile warranty (when you could have saved your money and your stress by just buying a slightly more expensive car with less mileage and a longer manufacturer’s warranty). Beware of the cheap plans because they often advertise exceedingly low prices but essentially cover nothing. Some extended warranty plans to avoid include those offered by TheAutoClub.com, Continental Warranty, AaautoWarranty and SmartAutoWarranty.com, which do not offer wear and tear coverage and have garnered over 250 annual complaints.

automobile warranty

If you’re buying an older model car, then extended warranty plans might be a smart idea. However, many newer vehicles from General Motors, Acura, BMW, Saab, Cadillac, Volvo, Lexus and Jaguar have replaced their old 3 year/36,000 mile warranty plans for 4 or 5 year/100,000 mile plans. In addition, many used cars have warranties that transfer over from the original owner to you, so be sure to find out the details. You can avoid classic auto scams by doing your research online and getting an extended warranty quote or two, prior to visiting the dealership.

One common problem people run into is to fail to read and understand the agreement before they get work done. Knowing the right questions to ask your warranty company is crucial, experts say. For instance, ask if you can get the work done at any shop, or do you have to look for a certain certification, or in some cases return to the dealer? Additionally, is your car covered for “wear and tear” damage or just mechanical failure?

You should have a comprehensive list of all the parts that are/aren’t covered! Sometimes you’ll get a “bumper to bumper” warranty that covers everything except for the wear items, like brakes and tires, while other times you’ll get a “power train” warranty, which covers the engine and transmission. While it’s rare to find a company that offers coverage for everything, you should ensure that some of the most expensive repairs will be taken care of.

Secondly, you should find out if there are certain stipulations that would make you ineligible for utilizing purchased warranty plans. In some cases, consumers have had their claims denied because they continued driving after their engines overheated or they attached unauthorized tow hitches to their cars. Sometimes, if you don’t get regular oil changes or fluid top-ups, then you could be at risk for vetoing your right to coverage as well. Know the rules and stick to them!

Some people need warranty plans, while others can get by simply saving money each month for anticipated repairs. Regardless, the best way to protect your investment is to get regular oil changes, air filter changes, fluid top-ups and tire rotations. Don’t let things wear down until they wreak havoc on other parts of your vehicle. Before you visit your dealership to buy a car, do a little bit of internet research and get an extended warranty quote. You’ll be happy you had that bartering chip later.

extended warranty coverage

Customers who like to be prepared for everything should purchase extended warranty service, especially if the automotive warranty is only for 3 years/36,000 miles. For a good car that has been taken care of, most trouble surfaces around the 80,000 mile mark when new transmissions, new brakes, new calipers or inner gaskets and seals are required, due to regular wear and tear usage. Therefore, it’s important for consumers who are looking for an extended car warranty to search for comprehensive coverage that includes “wear and tear” and lasts long enough. It’s equally important that the vehicle being purchased is free from defects as well.

First, consumers should check to find out who is backing the extended warranty service. Is it an independent company or the vehicle manufacturer? Generally, manufacturer-based used car warranties are ideal, known for the easy-to-use guarantee. With an after-market extended car warranty, the owner will need to read the stipulations to ensure that everything is covered.

For example, some companies require that owners call before the work is done. Some companies require regular oil changes and fluid top-ups for work to be covered. Depending on the arrangement, sometimes the company pays the auto mechanic directly, whereas other times the warranty company pays the car owner back later. Reading and understanding the agreement is crucial in preventing unpaid claims.

Secondly, consumers should ask if there is a deductible. For some people, paying a fixed amount per visit or per repair is a relief. For others, this deductible may still run up a hefty bill that is unacceptable. Sometimes, an extended warranty program will have a “per visit” deductible, which is one payment per shop, no matter how many parts are repaired. By contrast, a “per repair” deductible applies to each and every serviced part. While a “$100 deductible” sounds like small potatoes, it could add up if the fine print says it’s a “per repair” deductible. After getting an air conditioner, fuel pump and alternator repaired, suddenly a $300 bill may appear. The extended warranty service contract should be looked at carefully. Many warranties have a 30 to 60 day money back guarantee, so some consumers purchase it and have their lawyers look over it later to be sure it’s fair.

extended warranty service companies may come and go, which makes some people wary. Manufacturer warranties are often trusted because the car companies have been around for decades, with proven accountability. Consumers who are shopping around for a warranty company should read up on the company’s history and years of operation. Are they registered with the BBB? If so, were copious complaints filed? Many consumers can get a better deal on their warranty online versus purchasing through the dealership, but it requires a little bit of research.